Press Room

Augmented Reality Market worth over $165bn by 2024

Published Date: January 3, 2017 Author: Global Market Insights, Inc.

Augmented Reality Marketsize is set to exceed USD 165 billion by 2024; according to a new research report by Global Market Insights, Inc.

Increasing adoption across the e-commerce and retail space will spur the global augmented reality market demand over the forecast timeframe. The technology offers retailers the opportunity to enhance the overall shopping experience by bringing an image, product label or shopping window to life and greatly improves the degree of customer interaction with the products.

Retail brands are gradually turning to AR platforms to increase customer satisfaction, driving the augmented reality market size. For instance, Wayfair introduced AR technology that allow users to place full-scale 3D virtual models of products in settings. It helps users select images of décor or furniture from product catalogs and uses smartphones to position the objects in their room walls, ceiling, or floor.

High demand from enterprises to bridge the physical and digital world is anticipated to fuel the augmented reality market growth. For instance, in 2015, DHL carried out a pilot project in the Netherlands wherein the company equipped the warehouse workers with AR-enabled smart glasses. The technology was implemented for ‘vision picking’ in warehouse operations.

Strong investment landscape will provide a fillip to the augmented reality market. For example, by 2016 over USD 1.6 billion had been invested in the development of display devices based on AR (augmented reality market) technology. Magic Leap, a company developing AR head mounted displays (HMDs) has raised over USD 1.4 billion from investors including Google and Qualcomm.

Commercialization of devices such as HMDs and smart glasses by companies including Microsoft and Sony will fuel augmented reality market growth. Increasing enterprise focus to improve the quality of processors and sensors deployed in AR devices is also set to positively impact revenue.

Software segment of augmented reality market will benefit from the escalating demand for software apps for various applications such as gaming, entertainment, and retail sectors.

Head-mounted displays will account for over 50% of the augmented reality market share by 2024, mainly due to the rising demand in various applications such as medicine, military, scientific visualization, education, manufacturing, training, navigation, and entertainment. In addition, factors such as enhanced user-experience, improved content connectivity and enhanced Field of View (FOV) are forecast to contribute to the growing augmented reality market size.

Automotive applications for augmented reality market are expected to grow at over 80% CAGR from 2016 to 2024 owing to the increasing technology implementation in vehicles. Volkswagen uses spatial AR to project data on vehicle design models and analyze components, which saves time and cost.

China augmented reality market is anticipated to observe substantial growth over the future due to increasing investments in the manufacturing operations to develop advanced devices such as smart glasses. Rising penetration of mobile augmented reality market is expected to contribute to the overall growth. A significant number of AR apps are making inroads in the regional industry, creating a huge demand for advanced software.

Companies with significant investments and experience in the enterprise AR market space are becoming more attractive. For instance, Diotasoft now called “Diota”, a French technology provider with several enterprise customers including Groupe PSA, Renault, Dassault Aviation and Total announced a rebranding and launched a new platform for enterprise augmented reality market.

(AR) Augmented reality market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD million from 2014 to 2024, for the following segments:

Augmented Reality Market by component

Hardware

Software

Augmented Reality Market by display device

Head-mounted display

Head-up display

Smart glass

Augmented Reality Market by application

Automotive

Medical

Aerospace & defense

Gaming

Retail

Industrial

Others

The above information is provided for augmented reality market on a regional and country basis for the following: